Zurn Elkay Water Solutions Posts 35% Profit Jump to $58.9M in Q1 2026

Zurn Elkay Water Solutions Corporation, a manufacturer of water delivery and waste solutions, reported net income of $58.9 million for the three months ending March 31, 2026, a 35% increase from $43.6 million in the same period last year. Diluted earnings per share rose to $0.35 from $0.26. Read more earnings reports.

Revenue for the first quarter of fiscal 2026 totaled $433 million, up 11% from $388.8 million in the year-ago quarter. The company's gross profit expanded to $205.8 million from $181 million, while operating income climbed to $82.1 million from $63.4 million.

Cost of goods sold increased to $227.2 million from $207.8 million in the prior-year period. Selling, general and administrative expenses rose to $108.2 million from $101.2 million. The company reported an income tax expense of $18 million compared to $15.1 million a year earlier.

Cash generated from operations totaled $46.1 million for the quarter, up from $42.9 million in the first quarter of fiscal 2025. The company used $69.2 million in financing activities, compared to $92.1 million in the prior-year period. Investing activities consumed $3.4 million versus $4.3 million last year.

Total assets stood at $2.68 billion as of March 31, 2026, slightly ahead of $2.68 billion at the end of December 2025. Cash and cash equivalents declined to $273.5 million from $300.5 million at year-end. Accounts receivable increased to $242.7 million from $184.8 million, while inventory rose to $292.3 million from $274.4 million.

The company's balance sheet showed goodwill of $794.4 million and intangible assets of $820.4 million. Total liabilities were $1.08 billion, up marginally from $1.08 billion at the end of December. Long-term debt stood at $497.6 million compared to $495.6 million three months earlier.

Stockholders' equity edged up to $1.61 billion from $1.60 billion at December 31, 2025. The company had 167.0 million common shares outstanding at quarter-end, compared to 167.0 million at the end of the prior quarter.